Digital Realty posted fourth-quarter 2025 results highlighting higher revenue, record leasing in its 0–1 megawatt and interconnection category, and a larger multi-year backlog heading into 2026.
The company reported 4Q25 revenue of $1.6 billion (+14% year-over-year) and Core FFO of $1.86 per share (Constant-Currency Core FFO: $1.81), alongside renewal cash spreads of 6.1% (12.0% on a GAAP basis). Digital Realty ended 2025 with $817 million of annualized GAAP base rent backlog at its share, and it introduced 2026 Core FFO guidance of $7.90–$8.00 per share on both a reported and constant-currency basis.
Operationally, Digital Realty emphasized capacity expansion and booking momentum tied to cloud and AI demand. The earnings presentation cites ~3 GW of in-place IT capacity, 769 MW under construction, 90 MW delivered in 4Q25, and 135 MW of net new starts in the quarter, plus “>5 GW” of future development capacity.
- 4Q25 bookings: $400 million of annualized GAAP rental revenue at 100% share; $174.7 million at Digital Realty’s share (including $77.1 million from 0–1 MW and $18.9 million from interconnection).
- 0–1 MW + interconnection: record $96 million of 4Q bookings; 55% of total 4Q bookings; 155 new logos in 4Q (569 new logos for full-year 2025).
- Backlog: record $1.4 billion at 100% share (company presentation); $817 million at Digital Realty’s share, with commencement timing shown across 2026, 2027, and 2028+.
- Renewal leasing: $269 million of annualized cash rental revenue signed in 4Q25; cash renewal spreads 6.1% overall (GAAP 12.0%).
- Balance sheet and debt profile: 96% unsecured debt, 92% fixed-rate, and a weighted-average maturity shown at 5.0 years in the earnings deck.
- 2026 framework (presentation): total revenue $6.6–$6.7 billion; adjusted EBITDA $3.6–$3.7 billion; same-capital cash NOI growth 4.0%–5.0%; year-end occupancy +50–100 bps (from 84.7% at FY25).
“Digital Realty delivered strong financial results in 2025, with robust top-line growth, record leasing across our 0-1 megawatt plus interconnection offering, and a substantial backlog that provides clear revenue visibility into 2026 and beyond,” said Digital Realty President and CEO Andy Power.
🌐 Analysis: Digital Realty’s emphasis on smaller-to-midscale deployments (0–1 MW) plus interconnection aligns with the architecture shift toward distributed AI inference, enterprise private AI, and hybrid connectivity patterns that pull more cross-connect density into colocation hubs. The backlog and multi-year capacity pipeline suggest operators will keep prioritizing power-and-land control and faster delivery cycles as hyperscalers and large enterprises compete for constrained grid capacity in key metros.
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